While the Ho Chi Minh City (HCMC) housing market has gone quiet after the renewed outbreak of Covid-19, the market in the Vietnamese city’s neighbouring provinces like Dong Nai, Long An and Binh Duong has seen robust growth this year, experts said.
Distance is no longer a problem for developers in and around HCMC thanks to improved transport infrastructure, and they are increasingly looking at neighbouring provinces where prices are more reasonable and have potential for property development.
A recent report by the Vietnam Association of Realtors (VARS) said the development of Long Thanh International Airport in Dong Nai and Thu Duc city and the construction of new roads and bridges connecting the south-eastern region with HCMC have led to increased activity in the real estate market.
Pham Lam, director-general of real estate services firm DKRA Vietnam, said this is creating a wave of investment in emerging markets while traditional markets are reaching saturation point.
In Binh Duong province, land in areas adjacent to HCMC which have potential for economic development, such as Thuan An and Di An cities, have become ideal for affordable apartment projects, a product the city lacks.
VARS said apartment prices in Binh Duong increased sharply last year despite Covid-19 – from 25-30 million dong ($1,080-1,300) per square metre to 30-35 million dong – but remain much lower than in the city.
In Dong Nai, land prices in areas close to the eastern part of HCMC have also increased, especially thanks to the construction of the airport in Long Thanh.
In 2019 the average land price was 12-14 million dong per square metre, and rose to 22 million dong last year. In Long Thanh town, the price has surged to 100 million dong in some areas.
The real estate market in Ba Ria-Vung Tau province is also hot since it is adjacent to HCMC and has great potential for tourism development.
Investors also are keen on Long An province, which too borders HCMC. Some projects with high potential go for 21-26 million dong per square metre while in other areas they are 13-15 million dong.
No land is available in recent projects at less than 15 million dong.
VIET NAM NEWS/ASIA NEWS NETWORK